Recently, there is a new set of rules requiring a new level of transparency for buyers obtaining a purchase money home loan. The Consumer Financial Protection Bureau wants buyers to be able to see all the details with their appraisals. These details include the specific sales comparables used in the appraisal, the appraiser’s qualifications and, among other things, whether the appraiser is familiar with your neighborhood and area or from outside the area. And, these items should be made available to the buyer early on in the escrow process so that buyers can avoid problems arising late in escrow.
I think these are all good advances in the home buying process. Buyers need more transparency in the lending process and the need to be fully informed. These new procedures will provider the buyer with a better ability to evaluate their appraisals, to contest the value in the appraisal and to renogitate the sales price where they have retained an appraisal contingency in the escrow process.
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